I have about $60,000 in student loans. I am now only paying interest right now because I had to defer them in the past. I have heard that if you pay ahead it just counts towards future payments, but I would really like to pay them off early and try to pay less interest.
2007-08-30 15:28:15 · 4 answers · asked by flygirl 1 in Business & Finance ➔ Personal Finance
If you pay an extra amount with your monthly payment, it should go toward principal. If you just pay a couple days early, it would basically count as your next payment but might save a very small amount in interest.
2007-08-30 15:31:39 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Any time you can lower your debt, your interest will be less. You know, I don't know how they work - I leave my daughter to decide how she's going to do it, and she and her "significant other" have a system. I don't think they can be set up like a loan for a car, Simple Interest, so if you don't have any papers on the loans, get in touch with the source, and let them give you advice. Or, go to one of your Professors, preferably in the monetary side of education, and see if he or she can put you on the right track. It stands to reason, any time you lower the balance, the interest will go down remarkably, but your credit is still good so long as you pay the interest payments themselves regularly. Good luck!
2007-08-30 22:44:26 · answer #2 · answered by Mum 2 · 0⤊ 0⤋
When you send in extra money, make a separate check indicating it's to be applied to principal.
2007-08-30 22:44:25 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
Make double payments...
2007-08-30 22:31:40 · answer #4 · answered by Gerald 6 · 1⤊ 0⤋